The confluence of MS3 and WM2 has held as support and price has formed a double bottom – still to be confirmed by a higher high and with H4 still bearish the H4 21 and 55 are still going to be a challenge for Bulls. Worth noting as we continue selling Yen pairs. While the Yen pairs have been coming down off resistance you will notice that we are not making significant lower lows anymore. I am not saying stop selling – until we get higher highs the Yens are still bearish – though it is important to pay attention to market conditions. If equities move higher following a weaker Dollar the Yen will weaken too.
Today’s inflation out of US is quite important as this will shed more light on the comments in the FOMC statement regarding inflation and future hikes. A higher than expected number could be risk off and a lower number could be risk on. I have made a note of the price level that we need to break for the Yen pairs to become bullish. Until we break those levels it is unwise to be buying. Also note that while US equities may have printed a bottom we are also waiting for a higher high to confirm the bullish trend is back in play – until then still bearish.